Yokohama Rubber breaks ground on US$500 mn tyre plant in China

Yokohama Rubber Co announced recently that it held a groundbreaking ceremony ahead of the start of construction of its new passenger car tyre plant in Hangzhou City, China. The 300,000 sq m facility, with an investment of US$500 million, will replace another Yokohama Rubber plant currently operating in Hangzhou City.

The new plant will have an annual tyre production capacity of 9 million tyres, 3 million units more than that of its predecessor in order to ensure that Yokohama Rubber can capture the expected increases in demand for passenger car tyres in the Chinese market in the years ahead, it adds. Its largest foreign-funded project, full-scale production is scheduled to start in the second quarter of 2026.

The new plant will increase Yokohama Rubber’s local production of high-inch tyres in the Advan global flagship brand and the Geolandar brand of tyres for SUVs and pickup trucks, with a focus on tyres for new energy vehicles, which are expanding rapidly in China.

Under the “1-year plant” challenge, Yokohama Rubber aims to construct plants in just one year that achieve low-cost and highly efficient production that will realise a strong competitive position in the local market. Toward that end, Yokohama Rubber will combine its accumulated know-how with that of local partner companies that have a proven track record in the local market.

In his opening greeting, Chairman/CEO Masataka Yamaishi expressed his gratitude in advance for the many efforts to be made in the plant’s construction and said that he considers the plant to be a great growth opportunity given China’s rapidly growing automotive industry.

Yamaishi said that the start-up of a plant using the latest equipment that incorporates advanced automation and digitalisation technologies in just one year’s time will enable Yokohama Rubber to quickly meet local users’ needs for high-quality tyres and contribute to regional development.

Yokohama Rubber first entered Hangzhou in 2001, establishing its first Chinese tyre production base.

Qiantang, home to nearly 200 automotive firms including Geely and Ford, accounts for 95% of Hangzhou’s vehicle production.